Australia’s share market extended record highs for the fourth consecutive session on Thursday, following the US Federal Reserve’s first interest rate cut in over four years.
The S&P/ASX 200 Index surged by as much as 60 points, surpassing the 8200-point mark for the first time, before closing up 49.8 points, or 0.6%, at 8191.9 points.
The rally was driven by a recovery in mining stocks, bolstered by a rebound in iron ore prices and renewed investor interest in the sector.
BHP soared 2.6% to $40.19, while, Rio Tinto climbed 3.5% to $113.61, and Fortescue Metals Group added 1.2% to $17.64.
The ASX’s gains came despite modest declines on Wall Street, where US markets initially rallied following Fed Chairman Jerome Powell’s unexpected 50-basis-point rate cut.
However, Powell cautioned that the cut did not signal the beginning of an aggressive easing cycle, leading to a tempered reaction from US investors.
The S&P 500, Dow Jones, and Nasdaq each closed down 0.3% after the announcement.
Iron ore prices in Singapore rose to $92.35 per tonne, helping drive the mining sector's resurgence after prices dipped below $90 earlier in the session. Mining stocks, including index heavyweights, led the ASX rally, as investors rotated back into the sector following weeks of concerns about China's growth prospects.
On the bond markets, 10-year and 2-year rates were at 3.915% and 3.595%, respectively.
